John Coates: The Problem of Twelve, Index Funds and Private Equity.

This podcast episode discusses the rising concentration of wealth and power in the hands of a few financial institutions, the emergence and growth of index funds and private equity funds in corporate governance, and the changing role of boards in corporate governance. It also examines the political pushback against ESG investing and the potential impact of pass-through voting. Takeaways • Index funds and private equity funds have become more powerful and influential in corporate governance and the overall economy, leading to questions about where governance power should sit. • The concentration of power in the hands of a few index funds raises antitrust concerns, prompting discussions about changing antitrust law to take into account the governance impact of index funds. • Private equity boards are typically smaller and more focused on skill sets, allowing for prompt refreshment and replacement of board members compared to public company boards. • Conflicts of interest can arise when private equity funds sell one portfolio company to another fund that they run, and the private equity industry is taking steps to address these concerns. • Tina Fey is admired for her success in a male-dominated industry, her intelligence, humor, and ability to remain humble despite her accomplishments.